Current store owners Pauline and Andrew Towning and their son were sleeping inside when the fire broke out just before 5am and were woken up by the smoke alarm. The trio managed to get out uninjured and call for help.

Mrs Towning recently told The Advocate there had been a store on the site since 1899. The first store also burnt down.

The second was built when George Coles senior took it over in 1910-1921.

Seven Tasmanian Fire Service units and police were quick to respond to the emergency fire call but there was little to be done to save the store.

Volunteer firefighters wearing breathing apparatus braved the flames to try to save what could be saved in order to aid the job of the fire investigator.

The fire destroyed the store, all stock, a memorabilia room with irreplaceable items of Coles history and the town's history, the post office and the adjoining residence.

Mersey District Fire Officer Paul Hill said there was little the crews could do to save much.

"It will knock the community and it'll have a hell of an impact on people not to have the store," Mr Hill said.

Neighbours woken by the fire watched in disbelief as the store went up in flames.